What is the National Investment Fund Algeria FNI ~ Investment,finance for businesses

Thursday, April 25, 2019

What is the National Investment Fund Algeria FNI

Subject 01

Algerian  National Fund for Investment FNI:

The National Investment Fund (NIF) resulted from the restructuring of the Algerian Development Bank to promote new tools necessary for government intervention in financing and development. This initiative is part of the completion of the reform of the financial and banking sector launched by the Government.

The National Investment Fund is charged with financing the establishment and development of public and private sector institutions from its own resources, giving priority to the aspects of "profit" and "risk management" without prejudice to public order which is relevant to government policy.

The National Investment Fund (NIF) intervenes in the financing of investment projects from its own resources through:

Direct loans in the long term: These loans are directed to finance public projects and to enjoy preferential terms according to their nature (establishment of institutions, valuation of existing and rehabilitation ...), which meet the requirements of the National Investment Fund and contribute to the development objectives.

 In particular, IFAD intervenes to finance high-potential sectors in development over long periods of time compared to commercial banks.

This offer comes to complement the possibilities of conversion with loans available in the banking arena. Thus, the Fund intervenes primarily as a partner with other borrowers, particularly in large projects or in less favored sectors with commercial banks.

 The decision to fund the National Investment Fund is subject to a set of instructions that includes several stages.

B- In the form of contributions:

 especially by the capital of small and medium-sized enterprises of the national private sector, in the sectors of activity related to their strategic directions. In order to obtain approval, the project must comply with all economic criteria for the employment of money and have a significant positive impact on economic development. These contributions are limited to a period agreed between the parties concerned and contribute to:

· Investments related to the establishment, expansion and rehabilitation of institutions.

· Raising the capital of the respective national private institutions, including those calculated to enter into a partnership with a foreign trader, while respecting the precise legislative provisions.

The contribution levels shall be set at 34% according to the conditions corresponding to the Fund's Fundamental Law, which shall be determined by an agreement to be negotiated by the parties concerned.

C. Granting guarantees

- The Fund grants guarantees on foreign loans:

At the request of the Algerian economic agents, and in favor of foreign banks and financial institutions, which granted them loans, at a commission rate of 1% per annum of the loan amount and installments payable every six months.

- The Fund grants trade guarantees:

For the benefit of national dealers by order of the banks of foreign suppliers of goods and services, as part of the completion of projects in Algeria. These include:

· Undertaking guarantees in the framework of tenders covering the contractor's failure

· Guarantees for the return of advances and for supply or works.

· Guarantees of good completion

Guarantees are granted at 1% per annum (0.25% per quarter and are non-deductible).

The services of the National Investment Fund are directed to institutions, bodies and entrepreneurs in the public and private sectors. Projects submitted to the National Investment Fund for financing must be within the Fund's objectives and must achieve economic, financial and technical advantages and should not have a negative impact on the environment.

Eight sectors were identified as follows:

- Industry and Industrial Handling,

- Construction and public works,

- Media, Communications and Technological Innovation,

- Agriculture and food industries,

- Transport and logistics,

- tourism,

- Financial services,

- Renewable energy.

2. State investment funds

In accordance with the provisions of Article 100 of the Supplementary Finance Law of 2009, the Government has established 48 investment funds for all states where their administration has been entrusted to the State Account. Under the agreements signed with the Ministry of Finance, three (3) capital investment companies and two branches Construction .



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